Correlation Between Mahaweli Reach and Hotel Sigiriya
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By analyzing existing cross correlation between Mahaweli Reach Hotel and Hotel Sigiriya PLC, you can compare the effects of market volatilities on Mahaweli Reach and Hotel Sigiriya and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mahaweli Reach with a short position of Hotel Sigiriya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mahaweli Reach and Hotel Sigiriya.
Diversification Opportunities for Mahaweli Reach and Hotel Sigiriya
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mahaweli and Hotel is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Mahaweli Reach Hotel and Hotel Sigiriya PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sigiriya PLC and Mahaweli Reach is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mahaweli Reach Hotel are associated (or correlated) with Hotel Sigiriya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sigiriya PLC has no effect on the direction of Mahaweli Reach i.e., Mahaweli Reach and Hotel Sigiriya go up and down completely randomly.
Pair Corralation between Mahaweli Reach and Hotel Sigiriya
Assuming the 90 days trading horizon Mahaweli Reach is expected to generate 1.11 times less return on investment than Hotel Sigiriya. In addition to that, Mahaweli Reach is 1.13 times more volatile than Hotel Sigiriya PLC. It trades about 0.24 of its total potential returns per unit of risk. Hotel Sigiriya PLC is currently generating about 0.3 per unit of volatility. If you would invest 4,840 in Hotel Sigiriya PLC on October 24, 2024 and sell it today you would earn a total of 3,430 from holding Hotel Sigiriya PLC or generate 70.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Mahaweli Reach Hotel vs. Hotel Sigiriya PLC
Performance |
| Timeline |
| Mahaweli Reach Hotel |
| Hotel Sigiriya PLC |
Mahaweli Reach and Hotel Sigiriya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mahaweli Reach and Hotel Sigiriya
The main advantage of trading using opposite Mahaweli Reach and Hotel Sigiriya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mahaweli Reach position performs unexpectedly, Hotel Sigiriya can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hotel Sigiriya will offset losses from the drop in Hotel Sigiriya's long position.| Mahaweli Reach vs. Kandy Hotels | Mahaweli Reach vs. Pegasus Hotels of | Mahaweli Reach vs. Sigiriya Village Hotels | Mahaweli Reach vs. Colombo Investment Trust |
| Hotel Sigiriya vs. HVA Foods PLC | Hotel Sigiriya vs. Dolphin Hotels PLC | Hotel Sigiriya vs. Lighthouse Hotel PLC | Hotel Sigiriya vs. Distilleries Company of |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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